Business Law For Purchasing Of Climwits

Issue

Describe about the Business Law for Purchasing of Climwits.

In the current scenario, the case revolves around the purchasing of climwits, which would be used in the business as operated by Paula. As the need for the same was quite urgent, she had asked Tess, one of her employees, to make sure that 1200 climwits are arranged at a price not more than $12,000. As the need for the same was quite urgent, she had asked Tess, to order from Woddo Co. But when Tess had contacted the people in Woddo Co., it was conveyed to him that they do not have much stock to deliver the same in the stipulated time. As it was said that the stock was not available with the company, Tess had actually contacted some other company for the same, as the requirement was urgent. For this purpose, Tess had contacted Sepal Co. for the same, which was a new company to deal with. Therefore, as it was a new company, it became an important aspect to make sure for Sepal to ask the customer to order a minimum amount in order to execute the whole scenario. For this reason, the total amount of climwits, which were ordered from Sepal was 1400, at the price of $16,000. Not only this, being the first customer, Sepal was also giving a discount of 10% on the total bill to gain the loyalty of the customer. When Paula was given the information about this, she had immediately made a call to Sepal Co. for its original requirement and had asked them to abandon the remaining climwits. These climwits, being the most important aspect to be used for the betterment of the obtaining the luxurious items, it would benefit Paula in the long run. For this reason, Paula had asked Tess to make sure that the requirement is fulfilled under any circumstances. As there was an issue with the total quantity purchased, Paula had decided to return the extra amount of climwits, which were ordered by Tess at an exaggerated price. Paula had claimed that she would want 1200 climwits and for which the only payment she would be making would be $12,000, and not a single penny more. For this reason she had made a conversation with the management of Sepal Co. to make sure that the deal amount is reduced and along with same, the quantity to be to be bought. As there was a contract with Tess, Sepal Co can actually take the matter to the court and take legal action against Paula and Tess.

Rule

As per the contract act. It should be noticed Section 2 states that if the elements of a contract are fulfilled, and it is legally recognized, then any contract would be considered as a contract. In this case as well, it can be said that there was a contract between the parties, Sepal and Tess about the climwits, which were to be delivered as per the contract. The law does not allow any of the parties to breach the same and hence makes sure that all these aspects are fulfilled in the best possible manner.

Section 3 of the contract act also states for a fact that the breach of the contract from any of the party should be reported to the court of law in order to make sure that the near about customers, of the company, will not be facing this sort of an issue. Hence, the rule as per the contract act, states for a fact that, breaching of contract can take any company or an individual to the court. (Government, 2016)

In the current scenario, it should be maintained that Paula did not have any intention to breach the contract since the beginning. She had decided to do so only after getting to know about the fact that the deal was made with a different company as she had mentioned. And also the total deal value, along with the quantity as requited by her, was different. For this purpose, it should be said that she was not in favor of the deal, since the time, she got to know about the reason of not purchasing the climwits from Woddo Co. Therefore, it should be considered too, for a fact that as her own supplier was not being able to satisfy the required amount of climwits, it should be noticed that, not only the quantity, the company was not even ready to pay any amount, which was more that $12,000. Hence, it should be said that, though climwits, was a necessary product for her, but she was not able to pay, any dollar extra, in order to make sure that the company will be using the same as the raw material for its product and therefor the exact quantity as mentioned was to be ordered effectively. (Miller, 2013) Paula, being one of the most determined women, had stated the fact that when she got to know about the quantity and the amount to be paid to Sepal, she had immediately breached the contract and hence, it can be said that Sepal Co. can take the matter to the court to make sure that this breach of contract is not executed. (Consumer Law, 2015)

Application

Conclusion

In order to conclude, it should be said that Sepal Co. would be filing a legal notice against Tess and Paula as they are being including in the process of breaching the contract. As mention above, the Contract Act, does not allow any person to breach the contract as per the own wish and intentions. It should be considered as one of most sorted laws as introduced by the country’s law to have the entire contract undergo the process of breaching of the contract. There is a certain fine, which is to be paid by the individual or any company, who had been involved in the process of breaching the contract. Therefore, in this scenario as well, Sepal Co. for breaching the contract regarding the climwits would carry out legal proceedings, against Paula and Tess. (Contract Act, 2016)

In the present case, Merco, being the anew migrant in the country had to face certain difficulties in his workplace, regarding the fact that how he was not efficient with English. For this reason, his confident level was not up to that mark as it was expected from a person, who is living in Australia. Therefore, as he used to feel inferior about this fact, he had actually wanted a process of any sort of a factor, that would be used in order to make his English better, which would ease his professional and social life in the country.

One day, while having his lunch, right near his workplace, Merco had met Ted, one of the employees of Eddo Publishing ltd. the company had offered a subscription to the general public “English for Migrants” to become a professional in speaking English. It had levels, which were from Beginners to advanced. As it had almost all the features to learn about English, Ted convinced Merco to subscribe for the magazine as it would be aiding him in the long run to make sure that his English speaking ability is modified. For this purpose, he had laid down some of the clauses of the contract and some exaggerated scenarios, which had led to a situation where the company was not offering half of what was being told to Merco. Ted had stated that the teachers all over Australia to explain its students about the whole language English are using these magazines. He had even said that these magazines are of the sort, which is aiding most of the migrants to make sure that they do not be facing any sort of discrimination in the long run for not being able to speak English efficiently. Ted did not tell Merco about the fact that contract had a clause, by which it was stated that the magazine can actually change the total price and the subscription amount at their own discretion, without informing about the same to its customers. All these information was not actually told to him by Ted, because of which it can be said that the contract was actually taking place under the influence of Ted. Not only this, when Ted had actually drawn the contract, which was of about 90 pages, Merco had insisted for a fact that he would like to read the same and go for the subscription tomorrow, Ted insisted that it was limited offer and any delay would lead to a situation of paying an extra amount for the magazine or there might be a situation where the company will not be able to provide the magazine as there are certain limitation after a certain period of time. Ted said all these aspects, just in order to influence Merco. Though nothing negative was happened, yet, Merco is seeking an advice regarding the contract and his rights in against Ted, under the court of law. (Australian Consumer Law, 2015)

Conclusion

Section 34 of the contract states that any contract, which has been entered in to should not be influenced by any party or forced by any part, for their own respective benefits. Hence, it should be noticed that in this scenario itself, the decision taken by Merco is influenced by Ted and hence, it can be said that, his decision was highly influenced by the employee of the company. (Fairhall, 2012)

The court of law does not allow any thing of this sort and hence, if any person is being involved in influencing any person decision, Section 34 would be introduced in the case and the same can be taken to the court. (Consumer Law, 2016)

In this case well, Ted has been influencing Merco to go for the subscription, since the time they have started having a conversation. For this reason, Merco had to undergo the whole scenario as per laws as mentioned in the Contract Law. This has been the main reason for almost all the companies to make sure that they do not influence the decision of any individual or a company as it may lead to a situation where the other party may lead the case to a situation, where it was not expected. Therefore, it has to be said that one of the reasons as to why ted could actually be dragged to the court was the fact that he had actually influenced the decision of Merco. (The law handbook, 2010)  Now as Merco had realized for a fact that the decisions was influence, as ted did not even let him read the clauses and neither did he actually let him show the contract to his friend, Merco had started doubting ted and hence, it was necessary from him to make sure that he takes an advice regarding the same whether he should take the matter to the court. (Contract Act, 2016)

Though, nothing of that sort had happened, which might go against the words of Ted, yet it was necessary for him to take an action, as there are some of the clauses, which were hidden from him and the same might go against the Merco and therefore, it was important for him to undergo the legal aspect by appointing a lawyer to actually see in to the matter as per the contract law.

Conclusion

Hence, in order to conclude, it should be said that the Merco should have done this initially itself. If not this, the subscription for the magazine should not have been done without reading the contract. Once the matter is taken to the court, strict action would be taken against ted and his company to make sure that the whole scenario is executed as per the contract law. The court itself can actually breach the contract as most of the clauses were hidden from Merco and he had entered in the contract only after been influenced by Ted. Legal proceedings might be undertaken against him. (Law Live, 2016)

References

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Fairhall. 2012. Australian Government Review of Australian Contract Law. [ONLINE] Available at:https://www.lawsociety.com.au/cs/groups/public/documents/internetyounglawyers/644777.pdf. [Accessed 26 September 2016].

Free Sample | Australian Employment Contract Templates, Service Agreements, Website terms and conditions | LawLive. 2016. Free Sample | Australian Employment Contract Templates, Service Agreements, Website terms and conditions | LawLive. [ONLINE] Available at: https://lawlive.com.au/. [Accessed 26 September 2016].

Australian Contract Law | Julie Clarke. 2016. Australian Contract Law | Julie Clarke. [ONLINE] Available at: https://www.australiancontractlaw.com/. [Accessed 26 September 2016].

The Law Handbook. 2016. Elements of a contract – The Law Handbook. [ONLINE] Available at:https://www.lawhandbook.org.au/07_01_02_elements_of_a_contract/. [Accessed 26 September 2016].

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CONTRACTS REVIEW ACT 1980 . 2016. CONTRACTS REVIEW ACT 1980 . [ONLINE] Available at:https://www.austlii.edu.au/au/legis/nsw/consol_act/cra1980201/. [Accessed 26 September 2016].

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Contracts. 2016. Contracts. [ONLINE] Available at:https://www.fairtrading.nsw.gov.au/ftw/consumers/contracts.page. [Accessed 26 September 2016].

Julia Miller. 2013. Doing Business in Australia: Contract law. [ONLINE] Available at:https://www.claytonutz.com/knowledge/2014/june/doing-business-in-australia-contract-law. [Accessed 26 September 2016].

The Australian Consumer Law. 2016. An Introduction to the Australian Consumer Law – Australian Consumer Law. [ONLINE] Available at: https://consumerlaw.gov.au/consumer-policy-in-australia/resources/an-introduction-to-the-australian-consumer-law/. [Accessed 26 September 2016].

The Australian Consumer Law. 2016. Legislation – Australian Consumer Law. [ONLINE] Available at:https://consumerlaw.gov.au/the-australian-consumer-law/legislation/. [Accessed 26 September 2016].